As a result, minor construction problems can turn into disasters. This is illustrated by the case of a housing project built in the Bronx in In fact, each company had a contractual obligation to protect against damage from the elements.
But while they argued, the pipes froze in December, damaging the plumbing system, walls, ceilings, hardwood floors, tiles, kitchen cabinets, and paint. The project was finished a year behind schedule and cost half a million dollars more than had been bid. Many responsible contractors refuse to bid on public projects for fear of being forced to work with disreputable or unreliable companies. Public agencies, however, have little choice.
One firm, which had 85 outstanding lawsuits against the city from earlier jobs, won a contract to rebuild the Betsy Head Pool in Brooklyn. The contractor then challenged every item on the project as being beyond the originally outlined scope of work. Under a single-contract system, no general contractor would have hired a subcontractor with such a history.
Delays are the most obvious result of poor construction coordination. In fact, most major projects were delayed for more than a year. In , the New York City Housing Authority found that a simple apartment rehabilitation job took days under Wicks, compared with only days under single-contract bidding.
While contractors squabble about who is responsible for what work, time lapses and inflation drive up the costs. Many contractors then file damage claims against the government, claiming that the delays have increased their expenses and forced them to forgo other job opportunities. In , the electrical contractor working on the Queens Sanitation Garage walked off the job. Although the electrical contract constituted only 3 percent of the total work, the job was stalled while the city tried to arrange an alternative.
Unwieldy contractor replacement procedures gave the disruptive contractor leverage in negotiating how it would allow the city to complete the work. The contractor threatened to sue to prevent another contractor from being hired. In order to avoid the threatened lawsuit, the city had to cut a deal with the original contractor in which its electricians were paid for the work they did not do. Large multiple-contract projects often have cost overruns of 15 percent or higher.
The average cost overrun for single-contract projects was only 3. In other words, cost overruns are an average of 60 percent higher under the multiple-contract scheme—even though the bids are higher to begin with. The high number of change orders undermines the purpose of competitive bidding: A contractor that has been awarded a project on a low bid often can recoup any discounts it offered in its original bid.
A former official of the federal Department of Housing and Urban Development acknowledges that he routinely added 10 percent to his cost estimates for city projects to account for the effects of Wicks. As a result, some city proposals exceeded HUD cost guidelines and were deemed ineligible for federal funding. Even after a project has been built, the agency responsible may spend years in court defending itself against lawsuits for improper coordination of contractors.
Poor coordination and inadequate screening procedures can also result in shoddy workmanship. Major public projects—notably Police Plaza, Woodhull Hospital, and Martin Luther King High School—have required large expenditures to redo work that was botched by the original contractors. It soon became apparent, however, that separate contracting actually made contractors unaccountable: Each was able to point to the others to excuse delays and shoddy work.
Government agencies watched helplessly as timetables unraveled and costs escalated. In , the Legislature passed a bill, sponsored by State Senator Arthur Wicks, that required multiple contracting for all construction by public housing authorities in New York State.
You can learn more. What is underpinning? It is typically. From contracts, to payment application disputes to construction defect claims we can help. We can often assess your situation and your options during a free initial consultation. Contact us at or to schedule an appointment or contact us via the web by clicking here.
Kushnick Pallaci, P. Lhuillier Vincent T. Contact Us. Wicks Law. July 26, Share This Post. Every state except New York has found a much more efficient and effective way of providing protections for subcontractors without burdening taxpayers with the additional costs resulting from this outdated and misdirected measure. The high cost implications of Wicks are long-studied and well-documented. Previous studies that have shown that the Wicks Law results in significantly higher construction costs of as much as 30 percent on public projects.
They include:. Unshackle Upstate, a coalition of nearly 60 organizations representing over 32, employers has called for reform to the Wicks Law.
0コメント